“Bankers did not cause the 2008 financial crisis…. Instead, blame for the crash lies squarely with the world’s governments. Sure, bankers were both greedy and reckless. But it was government policies that created the conditions in which greed and recklessness were allowed–even required–to flourish.” By ignoring this and “failing to learn from their mistakes, they have made another crash inevitable.”

“The era of low interest rates will last for at least another 20 years, despite gently rising official borrowing costs in the coming years, one of the Bank of England’s leading policymakers has forecast.” Outgoing monetary policy committee (MPC) member Ian McCafferty said that “structural changes in the global economy meant UK borrowers and savers should get used to interest rates being “significantly” below the 5% average in the 10 years leading up to the financial crisis.”

“Largely absent during the economy’s eight-year recovery from the financial crisis, inflation is on track to pick up in 2018—and it might just catch investors off-guard.” Even a return to modest inflation, e.g. 2.5%, would be a jolt that “could reshuffle the market.”

“After eight straight months of positive returns, hedge funds may have finally redeemed themselves in the eyes of investors…. Total industry assets under management rose by $34.1 billion to $3.1 trillion, with positive returns boosting asset growth. The renewed interest in hedge funds comes in the midst of industry’s greatest period of performance since the financial crisis.”

As its first family fights publicly in an unprecedented and ugly manner, the “shrinking returns” of its sovereign wealth fund, GIC, “are adding gloom to Singapore. The sovereign wealth fund, which manages an estimated $343 billion of assets, has delivered its worst annual performance since 2001 barring the financial crisis.” Moreover, the “outlook is depressing too” as GIC prepares for “a protracted period of low returns.”

“Six months into its financial crisis, Toshiba is shaping up as the Sistine Chapel of corporate catastrophes: you have to lie on your back to appreciate its scale, and once you get your eye in, the beauty is mesmerising.” Toshiba’s sweeping catastrophe “encapsulates much that investors — both foreign and domestic — have long despaired.” And “for a Japanese government apparently committed to reversing decades of shoddy corporate governance… Toshiba provides the perfect example of why it is pushing for change.”

“US banks have achieved a clean sweep of the top five places in global investment banking for the first time in at least six years.” This highlights “the country’s dominance of investment banking since the financial crisis.”

U.S. REITs have soared on a “torrid rally.” Though the momentum will slow, strong fundamentals should underpin the sector, which is also benefiting from negative interest overseas. “The economy’s seven-year recovery should sustain real estate demand.” Moreover, “banks’ conservative real estate-lending policies in the wake of massive losses during the financial crisis should continue to limit supply.”

“The financial strains from Britain’s vote to leave the European Union are starting to show, as worries ripple through the country’s real estate market” causing three real estate funds to suspend withdrawals. Ultimately, “the reverberations could test whether, since the global financial crisis, officials have put in place the necessary measures to protect the broader system from a shock.”

Nearly a decade after the financial crisis, financial institutions still face challenges. However, the “savvy” ones are simplifying their structures and realizing efficiency gains. “For the past nine years, investments have poured into regulatory compliance and reporting initiatives. The rapid development of disruptive technologies such as robotics and artificial intelligence is helping firms automate many of those processes and redirect their energy toward growth activities. Big data, analytics and digital technology shed light on what they do best—and most profitably—and enhance the customer experience.”